DoD's $48.3M Landing Gear Logistics Contract Awarded to AAR Government Services
Contract Overview
Contract Amount: $48,319,566 ($48.3M)
Contractor: AAR Government Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-03-15
End Date: 2020-03-31
Contract Duration: 382 days
Daily Burn Rate: $126.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LANDING GEAR PERFORMANCE BASED LOGISTICS ONE (LGPBL1)
Place of Performance
Location: WOOD DALE, DUPAGE County, ILLINOIS, 60191
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $48.3 million to AAR GOVERNMENT SERVICES, INC. for work described as: LANDING GEAR PERFORMANCE BASED LOGISTICS ONE (LGPBL1) Key points: 1. The contract focuses on landing gear performance-based logistics, a critical component for aircraft. 2. AAR Government Services, Inc. secured this award under full and open competition. 3. The contract duration is 382 days, ending March 31, 2020. 4. The total award amount is $48,319,566.34. 5. The North American Industry Classification System (NAICS) code is 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing).
Value Assessment
Rating: good
The contract value of $48.3M for landing gear logistics appears reasonable given the scope and duration. Benchmarking against similar performance-based logistics contracts for aircraft components would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that likely resulted in fair market pricing. This method allows for the widest possible participation from qualified vendors.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment that drives down costs.
Public Impact
Ensures operational readiness of Air Force aircraft by maintaining critical landing gear components. Supports the Department of Defense's aviation maintenance and sustainment efforts. Provides essential services to the U.S. Air Force, impacting flight safety and mission capability. The contract's performance-based nature incentivizes efficiency and reliability in logistics support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively short (382 days), potentially leading to frequent re-competition and associated administrative costs.
- Lack of specific performance metrics or key performance indicators (KPIs) in the provided data makes it difficult to assess the 'performance-based' aspect fully.
- No indication of small business participation, which could be a missed opportunity for economic inclusion.
Positive Signals
- Awarded under full and open competition, suggesting a robust and fair bidding process.
- Performance-based logistics can lead to improved efficiency and reduced lifecycle costs.
- Secures critical support for Air Force aircraft operations.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this sector is often driven by defense readiness requirements and technological advancements in aviation.
Small Business Impact
The provided data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the prime contractor is expected to subcontract.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, a component of the Department of Defense, which has established oversight mechanisms for its procurement processes. The 'full and open competition' method suggests adherence to standard procurement regulations.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for vendor lock-in if competition is limited in future
- Risk of cost overruns if performance metrics are not strictly enforced
- Dependence on a single supplier for critical components
- Lack of transparency in subcontractor performance
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.3 million to AAR GOVERNMENT SERVICES, INC.. LANDING GEAR PERFORMANCE BASED LOGISTICS ONE (LGPBL1)
Who is the contractor on this award?
The obligated recipient is AAR GOVERNMENT SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $48.3 million.
What is the period of performance?
Start: 2019-03-15. End: 2020-03-31.
What specific performance metrics define success for this landing gear logistics contract, and how are they measured?
The provided data does not detail the specific performance metrics or Key Performance Indicators (KPIs) for this contract. A performance-based contract typically includes metrics related to availability, reliability, turnaround time, and cost-effectiveness. Without these details, it's challenging to fully assess the 'performance-based' nature and its effectiveness in driving desired outcomes and ensuring value for money.
What is the potential risk associated with the short contract duration of 382 days for landing gear logistics?
A short contract duration like 382 days can pose risks such as increased administrative burden and costs associated with frequent re-competition. It may also lead to vendor instability or reluctance to invest in long-term process improvements if they perceive a lack of continuity. This could potentially impact the consistent availability of critical landing gear support services.
How does this contract contribute to the overall effectiveness of Air Force aircraft maintenance and operational readiness?
This contract is crucial for maintaining the operational readiness of Air Force aircraft by ensuring the availability and performance of landing gear systems. Effective logistics support, especially performance-based, directly impacts aircraft uptime, reduces maintenance delays, and contributes to flight safety. The successful execution of this contract by AAR Government Services is therefore vital for the Air Force's mission capabilities.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Aarcorp (UEI: 005425814)
Address: 1100 N WOOD DALE RD, WOOD DALE, IL, 60191
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,319,566
Exercised Options: $48,319,566
Current Obligation: $48,319,566
Subaward Activity
Number of Subawards: 246
Total Subaward Amount: $45,732,113
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA820317D1226
IDV Type: IDC
Timeline
Start Date: 2019-03-15
Current End Date: 2020-03-31
Potential End Date: 2020-03-31 00:00:00
Last Modified: 2021-02-19
More Contracts from AAR Government Services, Inc.
- Established Option Year Three Aviation Service Contractor Line Item Numbers (clins) for Each Worldwide Location---Labor, Other Direct Cost (ODC) and Material Line Items — $449.0M (Department of State)
- Overseas Contract — $199.1M (Department of State)
- Worldwide Aviation Support Services OY6 — $194.3M (Department of State)
- Definitize Iraq OY1 — $121.6M (Department of State)
- C-40A Aircraft N743A — $120.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)